Apple (AAPL) shares soared to a record high Tuesday as the tech stock rode the quiet waves made at its Worldwide Developers Conference (WWDC), where CEO Tim Cook and other company leaders showed off Apple’s newest AI features and services.
Yahoo Finance’s Julie Hyman sits down with the Morning Brief team to pose the question of how general consumers should be expected to engage with and use artificial intelligence in their iPhones and other personal devices after a delayed stock reaction to Apple Intelligence.
For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.
This post was written by Luke Carberry Mogan.
Check out more of Yahoo Finance’s coverage of Apple and its WWDC announcements:
The challenge of Apple’s ‘AI for the rest of us’ is we don’t know what it’s for: Morning Brief
Apple will no longer be ‘missing out’ with new AI initiative
Apple’s iPhone segment will grow by 10% next year: Analyst
Apple looks to make AI more personal
Video Transcript
Well, Apple shares surging 7% and adding $190 billion in market cap on Tuesday, its largest one day gain ever this after the tech giant announcing its artificial intelligence system to discuss if the plate is enough for consumers to hop on the A I bandwagon.
We’ve got Yahoo Finances for your own Julie Hyman here with us.
Hey, guys.
Good morning.
And why I heard about this in this morning’s morning brief newsletter as I was thinking through Apple’s announcements and sort of what was different about it.
And it, it’s not about whether consumers are gonna hop on the A I bandwagon.
It’s that they are because look, the three of us are all sitting here.
We all have our iphones right in front of us and we’re g to them at all times.
So this is really going to be the first time as we get these A I introductions that people are going to be using A I in their daily lives at scale.
And it’s that part of it that really stuck out to me after you guys talk to Gloria of D A Davidson yesterday.
This is what he told you.
That means we’re gonna go from hundreds of millions of people using generative A I to billions of people as soon as this is introduced.
And that’s what’s gonna drive an iphone upgrade cycle.
And here’s the thing, even if it doesn’t drive an upgrade cycle, um even if it doesn’t drive it, people are still going to buy new iphones and people who have the iphone 15 will have access to these A I functions.
So you look at something like chat G BT which yes has large number of people using it.
But there are a couple of questions about that.
A what are they using it for?
Are they using it for daily life or they it for work?
Right.
And how often are they using it?
Probably not every single day you’re on this thing all the time.
So this will be the first time.
Like what is A I four?
What’s the killer use case on an individual personal basis?
We don’t know really?
And Apple is attempting to convince us.
Yeah.
And Julie, I think you summed it up just so well in your piece when you just said that proving part of it, right?
What, how, what they need to do to prove to consumers out there maybe who are one of the people that haven’t, that are not using A I in their daily lives right now, what they need to do to convince that and then ultimately the trickle down effect or the impact that that’s gonna have on some of these other larger tech giants as well.
Right.
And it’s, there’s no guarantee it’s going to work, first of all right, maybe, you know, I’m gonna ask Siri, when my, that is gonna arrive at the airport or whatever it is and it’ll give me the wrong answer or maybe I’m not gonna ask it in the first place because I’m still not gonna think to do it.
So there’s no guarantee that this convincing will work.
But it seems to me that, that what Apple and anyone else who’s trying to get people to use this stuff need to do is get it in front of them and actually using it because the presentation on Monday, yes, the stock went up a lot yesterday.
But on Monday, everybody was kind of like that’s it.
A lot of the analysts who cover even the people who were bows were like, ok, it met expectations.
This was enough, but it didn’t wow people, it’s not gonna radically change your life maybe until you start using it all the time.
I mean, just because Apple announced this, it doesn’t mean that all the other smartphone manufacturers fell in a ditch somewhere like they’re still going to try and iterate on top of the operating systems that already have and try to introduce their own competitive product in A I form that can integrate into apps and it still comes back to the developers and what developers are able to put into the ecosystem that make it that much more of a customer lifetime value that Apple is able to extract.
And we still don’t know what any of this is for.
Like what is A I for for us individually?
I I think there has been a better case for the enterprise and what it is for.
There.
There are so many companies who have talked to us about how they’re integrating chat bots into customer service, using it for coding, using it to save money.
In many cases, it’s on the consumer personal level that I think that that case just has not yet been made.
If anybody is going to make it Apple is a good contender.
Certainly there’s no reason why other smartphone makers are not also going to be making that case.
